What is the difference between margin and markup?

Margin is profit as a percentage of selling price. Markup is profit as a percentage of cost. A 50% markup results in a 33.3% margin. Both measure profitability differently.

What is a good profit margin?

Good margins vary by industry. Retail typically targets 25-50%, services 50-80%, and software 80-90%. Research your industry benchmarks for comparison.

How do I calculate margin from markup?

Margin = Markup / (100 + Markup) × 100. For example, a 50% markup gives: 50 / 150 × 100 = 33.3% margin.

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Profit Margin Calculator

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Calculate profit margins and markup percentages

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The Profit Margin Calculator helps businesses understand their profitability. Calculate gross margin, net margin, and markup from cost and selling price. Essential for pricing decisions and financial analysis.

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How to Use

1 Enter your cost price 2. Enter your selling price 3. View calculated profit margin percentage 4. See markup percentage 5. Calculate gross profit amount 6. Adjust prices to meet target margins

Benefits

Understand true profitability

Make informed pricing decisions

Compare product margins

Set target profit goals

Analyze pricing strategies

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